F1 cost cap offset to put Audi on a more level playing field

AUSTIN, Texas : Formula One's governing body has put 2026 entrants Audi on a more level playing field compared to rivals by introducing a cost cap offset to take into account higher wages in Switzerland.

Audi are turning Swiss-based Sauber, whose factory is at Hinwil near Zurich, into their works team when the sport starts a new engine era.

All teams are subject to a cost cap, set at $215 million for 2026 with a range of new items included in the financial regulations.

Seven of the 10 are based in England, where average wages in 2022 were $54,891 compared to $79,926 in Switzerland according to the Organisation for Economic Co-operation and Development (OECD).

Audi is making its own F1 power unit in Germany, where average wages in 2022 were $62,570.

The other two teams, Ferrari and Red Bull-owned RB, have their headquarters in Italy ($47,294).

English-based teams generally have an easier time recruiting staff from rivals without having to offer financial incentives because there is less upheaval for families than moving to Switzerland or Italy.

"It is our responsibility to also try to be fair," the governing FIA's head of single seaters Nikolas Tombazis told reporters at the U.S. Grand Prix.

"It became obvious to us that salaries in certain countries are much, much higher and the cost of life is much higher. I see it myself, I live in Geneva. Whenever I go to the supermarket I think about it.

"And we felt that for roughly the equal cost cap a team based in a high labour cost country like Switzerland would end up having approximately 30 per cent or even 40 per cent fewer people working on the car, which we felt was fundamentally unfair."

Tombazis said the difference meant teams like Sauber might eventually have to relocate from